The last 3 days have been tough for crypto investors, as prices have dropped, after trading in a range for weeks. Stellar (XLM) has not been an exception in this drop and has seen its price drop to around $0.22. But taken in the broader context, this drop is an opportunity for investors to accumulate on stellar (XLM), in anticipation of a future bull run. That’s because Stellar’s current price doesn’t match its fundamentals. It is highly undervalued and could be headed for a major bull rally in the future.
One of the factors that place Stellar in a good position for growth going into the future is its high chances of winning the cross-border payments market. That’s because of its partnership with IBM, which offers services to close to 97% of the global banking system. In business, relationships do matter, and the fact that IBM has the partnerships could play a role in swaying them towards stellar.
It is also important to note that the blockchain world wire, which is IBM’s cross-border payments solution allows banks to settle instantly in fiat, and not just in stellar (XLM). This is a big deal considering that most countries are yet to enact laws that favor all-out adoption of cryptocurrencies, especially in the banking industry. Even the U.S, one of the most important nations in the global financial system is yet to implement such regulations at scale. As such, banks are most likely going to implement blockchain cross-border payments solutions that don’t limit them to crypto instant settlements. This places stellar in a very unique position in terms of adoption in the banking industry.
On top of that, Interstellar is making moves that will make the stellar blockchain even more attractive to the finance industry. For instance, they are working on payment channels that introduce a number of interesting features to the stellar network namely: privacy, scalability, and interoperability. A feature like privacy will draw in financial institutions for very practical reasons. No financial institution wants to expose its information for all to see. It’s not in their best interests to do this. Scalability is also extremely important in the finance industry, where thousands of transactions take place every second. Inability to handle high transaction volumes is a bottleneck, and the fact that stellar (XLM) is taking steps towards even higher scalability takes it a step closer to integration in the finance industry, and more specifically in banking.
All the above point to a scenario where stellar could emerge as the dominant blockchain in the cross-border payments market, and it is a big deal. It’s a big deal because it is a market worth trillions of dollars, and if Stellar dominates it, then the demand it would create in the market could push up stellar (XLM) by a huge margin. It stands a good chance of blowing past its 2017 highs as this use case builds momentum. It also makes current prices a good buying opportunity for those who can visualize stellar going into the next decade and beyond.